Purchase Order Features

AutoCreate

Workflow for Automatic Purchase Order and Release Creation

Purchasing uses Oracle Workflow technology to create purchase orders and releases automatically from approved requisition lines. Purchase orders and releases are created automatically only if the approved requisition lines are valid (for example, they contain valid source document information) and if the "Is Automatic Creation Allowed?" attribute in the Oracle Workflow Builder is set to 'Y' for Yes. (It is set to 'Y' by default.) See: Workflow for Creating Purchase Orders or Releases. See: Choosing Workflow Options. See also: Automatic Release Generation.

Accurate Accounting

You supply accounting information as part of your purchase order. You can allocate order line quantities and costs to cost centers, projects, or departments.

To use on-line funds checking, you need to implement budgetary controls. You can check funds at the detail or summary level. You can also choose to check your funds for each period, quarter, or year. See: Budgetary Control and Online Funds Checking

To add on-line requisition lines to an existing standard purchase order or release, use AutoCreate. You can add requisition lines as a new purchase order line or add to an existing purchase order line. See: Autocreate Document Options.

If you are using encumbrance or budgetary control and if you choose to cancel referencing requisitions, Purchasing creates negative debit entries in your general ledger system to cancel the encumbrance associated with the purchase order. Purchasing recreates requisition encumbrances for the requisition lines you used to create the purchase order, using the distributions from your cancelled purchase order. See: Budgetary Control and Online Funds Checking

If you designate an invoice as the final match to a purchase order, Payables final closes the purchase order shipment during AutoApproval. You cannot update the status of a final-closed purchase order. See: Approval.

If you are using encumbrance or budgetary control and if you choose to cancel referencing requisitions, Purchasing automatically creates credit entries in your general ledger system to reverse the encumbrance that corresponds to the purchase order are final closing. See: Budgetary Control and Online Funds Checking.

Close for Receiving and Close for Invoicing

Purchasing automatically closes shipments for receiving and invoicing based on controls that you specify in the Purchasing Options window. Once all shipments for a given line are closed, Purchasing automatically closes the line. When all lines for a given header are closed, Purchasing automatically closes the document.

You can specify closing controls including: Receipt Close Tolerance, Receipt Close Point, and Invoice Close Tolerance. See: Defining Purchasing Options.

Note: The Close for Invoicing status does not prevent you from matching an invoice to a purchase order.